Carpathian Provides Update on Mine Construction and Development Progress on the RDM Project, Brazil "Remains on track with 2013 Production"

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2012) -Carpathian Gold Inc. (CPN.TO) (the "Corporation" or "Carpathian") is pleased to report that it is in the process of finalizing documentation with Macquarie Bank Limited to increase the Project Loan Facility for its wholly owned Riacho dos Machados Gold Project (the "Project" or "RDM Project"), Brazil from gross proceeds of US$80 Million (see press release dated January 10, 2012) to gross proceeds of US$90 Million. This increase in the Project Loan Facility is to cover off a previous funding gap that existed on the Project. With this increase, the Corporation is funded for the construction and development of the Project. To date in 2012 the Corporation has spent approximately US$40 million of its own equity and has committed an additional US$35 million to the Project from cash it has on hand. The overall initial CAPEX budget for 2012/2013 for the Project currently remains the same at approximately US$160 Million.

The following provides an overview progress update on the development of the Project as of the date of this press release.

The Project remains on track with the overall construction and development time-line schedule for gold production in the second half of 2013. Approximately 45% of the Project is completed to date. Essentially all major contract items have been signed off or ready for sign-off.

Optimized mine production plan has been completed which shows approximately 100,000 ounces of gold production on an annual basis, scheduled to commence in the second half of 2013. The process plant start-up is still scheduled for June/July 2013.

Earth works for the process plant infrastructure areas are 95% complete and ready for the installation of civil works followed by the erection of the structural steel and installation of the 9,000 tpd crushing and grinding line equipment, which is on site.

The earthworks for waste rock stockpile area is completed and is receiving the pre-strip material and pre-production waste rock from the open pit area that is currently being excavated by contract mining.

Hiring and basic training programs for the project personnel from the local region are virtually completed. All senior project staff members have been hired.

The owner mine fleet and excavation equipment is on site. The ADR plant is being shipped to site as per schedule. Two Atlas Copco sampling drills are in transit to the site as per schedule.

Engineering and design plans for the lining of the tailing impoundment area, which is an extra scope for the Project, have been completed. Construction of the tailing dam and impoundment area is scheduled to commence in October.

With essentially all major contract items signed off and/or ready to sign off, the overall Project budget is being optimized and updated monthly based on work completed and committed contracts to incorporate the additional scope of environmental work and the lining of the tailings impoundment area. The Project budget is monitored and adjusted where appropriate on a monthly basis to best incorporate the additional scope items to the Project.

Two on-strike exploration targets are currently being drill tested; Cinco Mil, approximately 2 km north of the open-pit and Mato da Roca 2, approximately 13 km south of the open-pit. Assay results are pending and will be reported when available. Several other targets have been identified on the Project and will be evaluated at a later date. The objective of the drill programs is to identify shallow open pit material to truck to the mill facility for either expanded yearly production and/or extended mine life.

The Corporation will continue to post regular updates on its website on the construction and development advancement of the Project.

About Carpathian

Carpathian is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados ("RDM") Gold Project in Brazil, which is currently focusing on activities surrounding permitting and construction, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project ("RVP") located in Romania.

On a company wide basis, Carpathian currently hosts NI 43-101 proven plus probable reserves of 830,200 ounces of gold (proven reserves of 2,300 Kt at 1.30 g/t Au and probable reserves of 18,500 Kt at 1.23 g/t Au) and NI 43-101 mineral resources (inclusive of reserves) of approximately 8.1 million ounces of gold in the measured plus indicated categories (RVP: 405.9 million tonnes at 0.55 g/t Au for 7.19 million ounces, RDM: 19.36 million tonnes at 1.50 g/t Au for 0.936 million ounces) and approximately 0.9 million ounces of gold in the inferred category (RVP: 26.8 million tones at 0.38 g/t Au for 0.33 million ounces, RDM; 9.447 million tones at 1.93 g/t Au for 0.587 million ounces), as well as 1.4 billion pounds of copper in the measured plus indicated category (RVP: 405.9 million tones at 0.16% Cu) and 97.0 million pounds of copper in the inferred category (RVP: 405.9 million tonnes at 0.16% Cu) (see press releases dated July 17, 2012 and April 6, 2011 for further details on resources and reserves).

The RDM Gold Project is targeted to produce in the order of +/-100,000 ounces of gold per annum with an anticipated goal for the commencement of production in the second half of 2013. The Rovina Valley Project will enhance Carpathians growth profile as a mid-tier gold producer.

Mr. Titaro is the qualified person (as defined in National Instrument 43-101) and is responsible for preparing the technical information contained in this news release.

Forward-Looking Statements: Statements and certain information contained in this press release and any documents incorporated by reference may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation which may include, but is not limited to, information with respect to the Corporation's expected production from, and further potential of, the Corporation's properties; the Corporation's ability to raise additional funds; the future price of minerals, particularly gold and copper; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Often, but not always, forward-looking statements/information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements/information is based on management's expectations and reasonable assumptions at the time such statements are made. Estimates regarding the anticipated timing, amount and cost of exploration and development activities are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates are set out herein. Capital and operating cost estimates are based on extensive research of the Corporation, purchase orders placed by the Corporation to date, recent estimates of construction and mining costs and other factors that are set out herein. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Carpathian and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include: uncertainties of mineral resource estimates; the nature of mineral exploration and mining; variations in ore grade and recovery rates; cost of operations; fluctuations in the sale prices of products; volatility of gold and copper prices; exploration and development risks; liquidity concerns and future financings; risks associated with operations in foreign jurisdictions; potential revocation or change in permit requirements and project approvals; competition; no guarantee of titles to explore and operate; environmental liabilities and regulatory requirements; dependence on key individuals; conflicts of interests; insurance; fluctuation in market value of Carpathian's shares; rising production costs; equipment material and skilled technical workers; volatile current global financial conditions; and currency fluctuations; and other risks pertaining to the mining industry. Although Carpathian has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein or incorporated by reference are made as of the date of this presentation or as of the date of the documents incorporated by reference, as the case may be, and Carpathian does not undertake to update any such forward-looking information, except in accordance with applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained or incorporated by reference in this document is presented for the purpose of assisting shareholders in understanding the financial position, strategic priorities and objectives of the Corporation for the periods referenced and such information may not be appropriate for other purposes.